New Silk Road Investment, one of Singapore’s longest-standing hedge funds, is winding down operations following declining performance and a major withdrawal of US institutional capital from Asian markets, according to a report by Bloomberg.
Founded in 2009 by industry veterans Yik Luen Hoong and Raymond Goh, the firm was an early player in China-focused investing, with offices in Shanghai and a pioneering role in accessing onshore Chinese securities. At its peak in 2021, New Silk Road managed nearly $2bn in assets. As of December 2024, that figure had fallen to just $615m.
Co-founder Hoong cited a prolonged pullback by US investors from Asia’s liquid equity markets – driven in part by geopolitical tensions – as a key reason behind the decision to shutter. “We are just one of many active value funds in Asia that have not been the favour of the time,” Hoong noted. “The market has changed in such a way that it disfavours longer-term fundamental investing with a value bias.”
New Silk Road’s flagship Asia Landmark Fund and China Fund both posted weak performance in recent years, including sharp declines of 28% and 19% respectively in 2022. That same year, China’s CSI 300 Index fell 22%, deepening a multiyear slump that challenged many veteran regional managers.
The firm began scaling back earlier this year, cutting staff in Shanghai and closing its Southeast Asia-focused fund. Despite the wind-down, Hoong emphasised that the decision wasn’t due to financial stress but a combination of market shifts and succession planning.
With both founders now in their 60s and successors not yet ready to take over, Hoong said: “We had just decided to hang up our boots to return the capital to our investors so that they can pursue a more appropriate strategy of the time.”
